The second agreement in question was unanimously approved by Pembroke Pines commissioners in June 2011, and related to the city’s delivery of fire, emergency medical, water and sewer services to Southwest Ranches and the proposed facility. Pembroke Pines would have received a one-time $3 million payment from CCA for hooking up water and sewer service under that agreement, plus annual fees of about $2 million for providing, water, sewer fees, fire and emergency medical services.

But Pembroke Pines commissioners voted to cancel that contract during a March meeting, following prolonged and vociferous protests from residents.

At the same meeting, Pembroke Pines commissioners also voted to sue CCA in state court to seek a declaratory judgment regarding the city’s legal requirement to provide water and sewer outside its boundaries.

The next morning, before Pembroke Pines filed its lawsuit, CCA pre-empted the city’s actions by filing for a declaratory judgment in federal court. CCA also is asking for financial damages from Pembroke Pines, said Leonard Samuels, an attorney representing the company and who attended Tuesday’s mediation.

The federal lawsuit took precedence over the state court action, and is still pending.

Southwest Ranches and CCA have worked together since about 2000 to bring the facility to fruition, Nelson said. CCA and Southwest Ranches agreed that the company would pay the town 4 percent of the daily $75 fee CCA would have received for each inmate detained at the facility, which would have had 1,500 beds.

Annually, that would have amounted to about $1.6 million from CCA, Poliakoff said. Southwest Ranches also would have received an estimated $350,000 a year in property taxes from the project, he said.

CCA’s attorney, Samuels, said Pembroke Pines’ actions have “totally devalued our property.’’

H. Mark Purdy, a retired circuit court judge acting as mediator, cautioned both parties that failure to reach an agreement in mediation would be costly and time-consuming.

“It would be difficult for the public to endure that,’’ Purdy said.